Bao Finance Docs

Fees, Penalties & Funds

Bao Markets

Interest Rates

You pay interest on any synthetic tokens that you mint. The APR is the annualized rate at which your debt will grow. Interest rates are dynamic and change according to market conditions.
a 1.2% interest rate to borrow/mint baoUSD

Liquidation Penalties

The liquidation penalty for all collaterals is 10%, or which 2.8% goes to the insurance fund and 7.2% goes to the liquidator.
If your health factor drops below 1, your collateral will be flagged for liquidation. This means anyone can repay your loan and collateral 1.1x the value of the repayment will be seized.

Bao Baskets

Our bSTBL basket has no fees to make its use as collateral more attractive.